Methods of vendor managed inventory control in supply chain management

By inducing the typical inventory control problem - the bullwhip effect, this paper presents vendor managed inventory (VMI) control methods on the basis of traditional methods of inventory management methods, constructs a VMI mathematics model, and analyzes the influence of VMI on inventory cost and channel profit. Finally, a special case is studied to verify that VMI is an effective supply chain strategy that can not only increase channel profit of supplier and customer but also improve full channel coordination, thereby reducing the bullwhip effect.

Vendor managed inventory and bullwhip effect

This paper studies that the bullwhip effect of order releases and the amplifications of safety stock arise within the supply chain even when the demand model is ARIMA(0, 1, 1) and the forecast method used is a simple exponentially weighted moving average. It also examines a vendor managed inventory (VMI) program to determine how it can help alleviate such negative effects, and gives the theoretical proofs and numerical illustrations. The results show that the effects with VMI are better than the effect without VMI in demand forecasting and safety stock levels, etc.

Quantity-based shipment consolidation and stock replenishment policy with lead time in vendor-managed inventory system

In order to let the supplier make more reasonable supply decisions,an integrated continuous replenishment policy for the vendor-managed inventory system is presented,which considers the quantity-based shipment consolidation and stock replenishment with lead time.Then the system cost is analyzed and a mathematical model is built.Since the model is rather complex,the bounds of the optimal policy are first attained,then the problem is solved by a heuristic algorithm.Through experiments the relationship between the order lead time and the corresponding integrated policy is discussed,and the influence on the system cost is also analyzed.The results reveal that the lead time's influence on the system is more serious with the increase of the order lead time,the integrated policy with the order lead time is more reasonable and the optimal policy can minimize the total system cost.Finally,the parameter sensitivity of the model is analyzed.

Optimization purchase price and the profit policy undervendor managed inventory

The optimization policy of the purchase price and the profit under vendor managed inventory(VMI) is studied. For a salable product, supply chain mode of VMI is established, which is based on deterministic demand, having initial stock and having stock-out cost. With the further analysis of the mode, VMI is found to increase profits of the buyer in the short-term motivation. But VMI will reduce profits of the supplier under the matching condition. And in the short-term motivation, VMI will increase the purchase price to compensate the transfer cost of the supplier. As a result, the foundation of theory is provided to implement VMI in the supply chain, and have some definituded project significance.

A Model on Inventory and Supply Management under VMI Tactics

This paper puts emphasis on how to arrange the stock and supply to the customer rationally under the VMI tactics. Having considered the supplier＇s delivery expenses, memory expenses and loss in short supply in model, the minimum total cost goal model of supply chain has been put forward using method of storing theory to charge example test the method of solving and analyzing the conclusion to propose.

基于供应商管理库存模式的配送路径优化问题

基于供应商管理库存(vendor managed inventory,VMI)模式制定科学的产品配送决策,可以合理优化库存水平、有效提高物流运输效率。针对VMI模式下的配送路径优化问题开展研究,考虑客户的产品消耗率和服务时间窗等因素,以总配送成本最小为目标建立混合整数规划模型,并设计了贪婪算法。利用Gurobi求解器对小规模算例进行求解,分析了VMI模式的优越性,结果表明:基于VMI模式的配送路径规划方案可以有效减少库存水平,降低总配送成本;然后利用中等规模算例分析贪婪算法的求解效果,结果显示,对于40个点的中等规模算例,求解器在240 min内无法得到最优解,而贪婪算法可以在0.2 s之内得到近似最优解。

Implementing VMI service pricing strategy for 3PL corporation considering recovery costs

The collector managed inventory(CMI)management idea is introduced based on the comparison of manufacturer and third-party logistics(3PL)implementing vendor managed inventory(VMI)services.Considering recovery costs,the service pricing strategies for 3PL corporations implementing VMI are studied to meet two conditions of participation constraints and incentive-compatibility constraints.The numerical simulation results indicate that the supply chain partners' profits change after considering recovery costs,and the 3PL corporation's profits and the total profits increase first,and then decrease.The retailers' and manufacturers' profits also increase.The total profits of the supply chain have a characteristic of increasing first and then decreasing with the increase of the callback ratio of unsold products.The concrete extremum point is codetermined by price flexibility,service pricing of the 3PL corporation,callback price and callback ratio.

Integrated continuous replenishment planning in VMI system of retail industry

In order to let suppliers monitor customers＇ inventory levels and make supply decisions regarding order quantities and delivery time, an integrated continuous replenishment planning （CRP） strategy of fresh food oriented to retail industry is presented, which integrates the consolidation of shipment and inventory replenishment considering the deterioration of items to guarantee the quality safety of fresh food during the replenishment cycle. A vendor managed inventory （VMI） mathematical model to compute upper-level inventory and delivery cycle is built. Based on the real-time sales data exchange, it enables suppliers to make the decision of the optimal time and the quantities of replenishment for retailers during a delivery cycle, in order to replenish the consumers＇ stock initiatively and minimize the long-run average cost.

Multi-objective vendor managed inventory system with interval type-2 fuzzy demand and order quantities

Purpose-The proposed IT2FMOVMI model intends to concurrently minimize total cost and warehouse space for the single vendor-retailer,multi-item and a consolidated vendor store.Regarding demand and order quantities with the deterministic and type-1 fuzzy numbers,we have also formulated the classic/crisp MOVMI model and type-1 fuzzy MOVMI(T1FMOVMI)model.The suggested solution technique can solve both crisp MOVMIand T1FMOVMIproblems.By finding the optimal ordered quantities and backorder levels,the Paretofronts are constructed to form the solution sets for the three models.Design/methodology/approach-A multi-objective vendor managed inventory(MOVMI)is the most recognized marketing and delivery technique for the service provider and the retail in the supply chain in Industry 4.0.Due to the evolving market conditions,the characteristics of the individual product,the delivery period and the manufacturing costs,the demand rate and order quantity of the MOVMI device are highly unpredictable.In such a scenario,a MOVMI system with a deterministic demand rate and order quantity cannot be designed to estimate the highly unforeseen cost of the problem.This paper introduces a novel interval type-2 fuzzy multi-objective vendor managed inventory(IT2FMOVMI)system,which uses interval type-2 fuzzy numbers(IT2FNs)to represent demand rate and order quantities.As the model is an NP-hard,the well-known meta-heuristic algorithm named NSGA-II(Non-dominated sorted genetic algorithm-II)with EKM(Enhanced Karnink-Mendel)algorithm based solution method has been established.Findings-The experimental simulations for the five test problems that demonstrated distinct conditions are considered from the real-datasets of SAPCO company.Experimental study concludes that T1FMOVMI and crisp MOVMI schemes are outclassed by IT2FMOVMI model,offering more accurate Pareto-Fronts and efficiency measurement values.Originality/value-Using fuzzy sets theory,a significant amount of work has been already done in past decades from various points of views to model the MOVMI.However,this is the very first attempt to introduce type-2 fuzzy modelling for the problem to address the realistic implementation of the imprecise parameters.